October 17, 2006

Companies investing nearly $1 billion in Michigan

LANSING - Governor Jennifer M. Granholm today announced that the Michigan Economic Development Corporation (MEDC) is helping eight companies grow in Michigan and is backing six brownfield redevelopment projects expected to create and retain a total of 8,572 jobs and involve more than $955 million in capital investment in communities throughout the state.

"These companies are investing nearly $1 billion because Michigan is a great place to do business," Granholm said. "These are just the latest signs our economic plan is working and paying dividends for workers and families in communities across the state."

The 14 projects announced today include:

- AG Simpson Automotive Systems plans to invest in capital and equipment to expand its automotive parts assembly and other manufacturing capabilities by reopening a facility in Sterling Heights. The project will create 242 new jobs, including 130 directly by the company. A Single Business Tax (SBT) credit valued at more than $576,000 over six years helped convince the company to choose Michigan over competing international sites. The city of Sterling Heights has approved a nine-year tax abatement worth $357,000 to support the project.

- American Litho Inc., a subsidiary of Konica Minolta Graphic Imaging USA, Inc. (KMGI) will institute a new production line in Kentwood by investing $13.5 million over and above the $22 million already invested. Michigan beat Pennsylvania for the project which is expected to create 327 jobs, including 163 directly by the company. In addition, KMGI will be relocating its corporate headquarters to 5800 Foremost Drive. The city of Kentwood is considering a 12-year tax abatement worth $800,000 to support the project. Konica Minolta Graphic Imaging USA is a wholly-owned subsidiary of Konica Minolta Holdings, Inc. Konica Minolta Holdings, Inc. was among 12 companies Governor Granholm received commitments from while on an investment mission in Japan in May 2006.

- BASF Corporation plans to invest $150 million to relocate its R&D, administrative and manufacturing operations to Wyandotte from Wisconsin. The new facility is expected to create 648 new Michigan jobs, including 175 directly by the company. An employment Single Business Tax credit valued at $5.5 million over 10 years and a brownfield Single Business Tax credit worth $15 million helped convince the company to grow in Michigan instead of at a competing site in Tennessee. The city of Wyandotte is also considering local tax abatements totaling approximately $35 million over 20 years to support the project.

- Backyard Storage Solutions LLC will invest more than $5 million to open a new manufacturing, distribution and administrative facility in Monroe that will replace the company's smaller facility in Warren. The project will create 140 new jobs, including 80 directly by the company. A Single Business Tax credit valued at $561,000 over seven years helped convince the company to grow in Michigan instead of competing out-of-state sites. The city of Monroe is considering an eight-year tax abatement valued at $81,000 to support the project.

- Karmann Manufacturing LLC will invest $22 million in its Plymouth facility. The expansion is expected to create 735 new Michigan jobs, including 375 directly by the company. A Single Business Tax credit valued at more than $4.1 million over 10 years and a $212,500 Economic Development Job Training grant helped convince the company to grow in Michigan instead of at a competing site in Tennessee. Plymouth Township has approved a 10-year tax abatement valued at approximately $261,000 to support the project.

- PureFlex Inc. plans to invest $7.3 million to lease and equip a new facility. The project is expected to create 225 direct jobs and an additional 141 spin-off jobs. The city of Kentwood is considering tax abatements worth $1 million to support the project. The company had also considered a competing site in Williamsburg, South Carolina for the project. PureFlex manufactures high-purity hose, fittings and advanced composite valves for the biopharmaceutical and chemical industries.

- Ryder Integrated Logistics Inc. is considering consolidating logistics operations in Novi. If approved, the company would invest approximately $20 million in the project which is expected to create 777 new jobs, including 400 directly by the company. A Single Business Tax credit valued at $3.9 million over seven years has been approved to influence the company's decision. The city of Novi has approved up to $481,000 of city road funds to pay for public infrastructure improvements required for the project. In addition, the Oakland County Workforce Development Division has committed up to $150,000 in federal funds for workforce recruitment and development services to support the expansion.

- Siemens VDO Automotive Corporation plans to invest between $50-60 million to consolidate operations and establish one North American headquarters location in Auburn Hills, including a vehicle and application engineering facility and test labs. The project, pending Siemens VDO Board approval, is expected to create and retain up to 2,851 jobs, including up to 1,100 directly by various Siemens operating companies. A Single Business Tax credit valued at more than $27.2 million over 10 years helped convince the company to consolidate in Michigan instead of a competing out-of-state site. The city of Auburn Hills has proposed an eight-year tax abatement valued at approximately $1.5 million to support the project.

- Greenleaf Holdings 3 LLC will use a brownfield Single Business Tax credit valued at $2.5 million to transform two blighted properties located at 130 and 140 West South Street in downtown Kalamazoo. The new development will consist of a four-floor office tower and four parking levels with 142 spaces. The developer will invest approximately $32 million in the project which is expected to create 10 new jobs and retain approximately 56 jobs.

- Woodard Station Lofts LLC will utilize state and local tax capture valued at $2.5 million and a brownfield SBT credit valued at $1.1 million to help redevelop the former Woodard Furniture manufacturing building in Owosso into a mixed-use development with condos and retail/office space. The developer will invest $17.5 million in the project which is expected to create 35 new jobs.

- Central Brush Park LLC and 3100 Woodward LLC will use state and local tax capture valued at $7.2 million and a brownfield SBT credit valued at $10 million to move forwarded on two related developments in downtown Detroit. In combination, they will create 347 housing units in addition to commercial and retail space. The developers will invest $112 million in the project, which is expected to create 75 jobs.

- City of Flint will utilize state and local tax capture valued at $304,070 to help transform the former Berridge Hotel in downtown Flint into a mixed-use development with 18 condos and commercial space. A brownfield SBT credit worth $436,208 will help with the $4.5 million redevelopment, expected to create 10 new jobs. The project will be financed by the Genesee County Land Bank Authority.

- City of Lansing will use state and local tax capture valued at $919,500 to help Demmer Corporation expand its manufacturing and logistical operations at the former Motor Wheel plant in Lansing. Two brownfield SBT credits worth $667,000 and $360,000 will assist the project which will include upgrades at the company's 1600 N. Larch and 736 McKinley buildings. The project is expected to involve $12 million in private investment and create 300 new jobs.

- Berrien County will use state and local tax capture valued at more than $95.3 million to help advance the Harbor Shores redevelopment project in Berrien County. On October 18, 2005, state and local tax capture worth $12.4 million was approved for the initial phases of the project. Since then, several project phases have been clarified and additional property has been added. The mixed-use development will include housing, hotels, a water park, golf course and retail/commercial opportunities. The project is expected to include more than $500 million in private investment and create 2,000 new jobs.

"Michigan is more than up to the challenge of competing in today's global economy," MEDC President and CEO James C. Epolito said. "Today's announcements show that companies all over the world believe in Michigan's economic future, and they want to invest and do business here."

In her 2006 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. Since January 2005, the governor and the MEDC have announced the creation or retention of more than 160,000 jobs as a result of targeted assistance provided by the MEDC.

The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life. For more information on the MEDC's initiatives and programs, visit the Web site at www.michigan.org.

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